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How to Deal with Periods of Volatility When Trading Forex

There are many different factors that can affect the stability of a financial market, and it’s important as a trader to be able to properly digest and evaluate all the information you are being fed and avoid any unnecessary noise from outside influences.

Global markets are continuously fluctuating, and the forex market is not immune to episodes of volatility. What’s important to remember is that for all markets, there are ups and downs, and that stability will inevitably return to the market. As a trader it's important to learn the tools that will allow you to not only survive but thrive during times of volatility.

As a trader it’s important to have a plan in place to shield yourself from potential risks and ensure that your assets are safe during times of rapid price fluctuation. In this article, we’ve gathered together our expert traders at DupliTrade to compile a list of Do’s and Don’ts, to safely and effectively guide your trading during these times of instability:

Don’t Panic

When involved in trading Forex, especially during times of volatility it’s crucial that you remain calm. Keeping your cool can mean the difference between an immense profit or loss. You must realize that in the event of a sudden price fluctuation, that you should stick to your original trading strategy. Evaluate your next move, as it could determine the future of your entire portfolio. Because panic is tied so closely to the emotional portion of your psyche, you may want to consider integrating an automated trading platform into your strategy, allowing you to completely remove the element of emotion.

Integrating automated trading into your strategy through the DupliTrade platform, will effectively allow you to copy the trades of our highly experienced and vetted traders. During periods of high volatility, automated trading can act as a safety net, providing you with a feeling of assurance knowing that the decisions have been left up to our experienced traders.

Make a Good Plan

Having a plan and having a good plan are two very different things. When beginning to trade Forex it's important that as part of your trading strategy, you put a plan into place that protects your gains and minimize potential for risk of losses.

This can be done by testing out your strategy using a free trading simulator, like the one offered by DupliTrade. Using this trading simulator, you will be able to test out strategies and evaluate any changes that need to be made.

Regardless if the market is in turmoil, or stable. Having a good plan in place is just sensical and is the cornerstone of any trader’s long-term plan.


Leave It To The Professionals

Sometimes during times of extreme volatility it's best to surrender to a higher power. Not the 12 step AA ‘higher power’, an EA Platform ‘higher power’.

Signing up and taking advantage of an Expert Advisor platform like DupliTrade, allows you to add an element of “set it and forget it” to your trading strategy, all the while having a sense of confidence that your portfolio is being managed by top traders.

Expert Advisor platforms are there to provide you with an alternative to having to monitor the market 24/7, which as we know, during times of extreme volatility, is necessary. It removes the potential to trade based on emotion and simply executes your trades based on the technical analysis of experienced professionals.

Be Patient, Good Things Come To Those Who Wait

It can’t be said enough that patience is one of the most important attributes of a successful Forex trader. Regardless of the market conditions, patience will determine your ability to hold off on making snap decisions, and the ability to hold on for something greater.

Keeping these tips in mind could mean the difference between coming out of a bear market with gains, or potentially not coming out at all. Do your research, put a good plan in place, continuously evaluate and test your trading strategy, your portfolio will thank you.

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